Answer:
Debit Unearned Revenue $5,480
Credit Revenue $5,480
Explanation:
On December 31, 6 months has been passed so, the revenue of 6 months should be recorded as the payment was recorded as unearned revenue on July 1. The revenue account will be credited by the 6 months revenue amount and unearned revenue account will be debited to reduce the amount by the six month accrual.
Total Unearned revenue = $10,960
Unearned revenue per month = $10,960 / 12 = $913.33
revenue for six months = 913.33 x 6 = $5,480
